Free of charge! Just now, FBA has a big update...

Free of charge! Just now, FBA has a big update...


At the end of the year, FBA has ushered in a wave of major updates as usual! These updates are both good and bad, which makes sellers feel mixed!

1

This type of seller is free of FBA fees


First of all, let me tell you the good news! Recently, Amazon launched a new program called FBA New Selection program, which aims to provide free monthly storage and removal services for new ASINs.


One of the highlights of this program is "free". Starting from April 1, 2020, participants are eligible for free monthly storage, free removal, and free returns for eligible new FBA ASINs. In addition, FBA newcomers have the opportunity to receive a $100 discount on Amazon Partnered Carrier delivery.


Acquisition conditions


Sellers with an Inventory Performance Index (IPI) score of 400 or higher!


According to the FBA inventory storage limit policy, sellers with no storage limit!


ASIN Eligibility


The program is only available for small standard and large standard sized items.


The parent ASIN must be new to FBA.


Eligibility for free returns is limited to categories such as clothing, shoes, handbags and accessories, jewelry, luggage, and watches!


ASINs in the Media category and used items are not eligible!


It can be seen that this plan is Amazon's support for FBA novices, aiming to cultivate excellent and loyal FBA users. But we all know that Amazon has always been unwilling to suffer losses. This time, Amazon has given benefits to new sellers, but it has taken action against all FBA sellers!

2

FBA overall costs rise again


Recently, Amazon released a notice about "Changes in US Amazon FBA Fees and Sales Commissions", announcing that it will increase US FBA delivery fees and adjust sales commissions for some products. From the official notice, the fee changes generally include the following aspects:


FBA logistics delivery fee changes


According to Amazon officials, the FBA delivery fee increased by 3% on average, but in actual calculation, the fee increase in several stages exceeded 8%, which is an astonishing increase!


Sales Commission Changes

This time, Amazon adjusted the sales commissions of products in 5 categories:

【Shoes, Handbags, and Sunglasses】: The referral fee for items with a total sales price of more than $75.00 is reduced to 15%


【Outdoor furniture】: Reduced to 10% for total sales over $200


[Personal Care Products]: For products with a total sales price of less than $10, the discount is reduced to 8%.


Sportswear: All sportswear will be subject to the sales commission of the "Apparel and Accessories" category, which is 17%.


【Ring Accessories】: Integrated into the "Amazon Device Accessories" category, with a sales commission of 45%.


Monthly storage fee changes

From January to September, the monthly inventory storage fee for standard-sized items will increase by $0.06 per cubic foot. This means that the increase in storage fees is close to 10%.


Changes in labelling fees

On February 18, 2020, Amazon increased the fee for its logistics labeling service from $0.20 per item to $0.30 per item.


Removal Order Fee

Amazon will charge a per-unit removal fee based on weight. At first glance, it seems that the price has been reduced, but the fees for products weighing more than 2 pounds are higher. 2 pounds is just under 1 kilogram. As long as it exceeds 1 kilogram, a fee of 0.4+0.2*excess weight will be charged. The weight of many products is above this line. For these sellers, the disposal/removal fee is actually more expensive.


Changes to Light and Small Program Fees

After the change, a fixed tiered charging system was adopted, and it was difficult to tell at first glance whether the price had increased or decreased!


The FBA fee changes that will be implemented in February 2020 seem to have both increases and decreases, but a closer look reveals that most of them are price increases, especially for key fees, and the reductions are just insignificant amounts of money. My brother-in-law's wishful thinking is really smart!

3

FBA labeling policy changes


In addition to updating the charging standards, FBA has also made corresponding regulations on labeling. If you do not make adjustments, you may not be able to ship your goods! Some sellers have received a notice from Amazon stating that from today on, the shipping label for FBA and the label of the freight company (such as UPS, Fedex) must be affixed on the same side.


 


Previously, Amazon sellers simply affixed Amazon labels and express labels on packages. However, for Amazon warehouses, it will be more difficult to match express numbers with FBA IDs, further reducing logistics efficiency.


At present, Amazon has not given a clear implementation time for this change. However, to be on the safe side, in order to avoid rejection and unnecessary trouble, sellers are currently advised to try their best to affix labels in accordance with the new regulations.


After the Black Friday online promotion, Amazon was too busy processing customer orders to take care of sellers’ goods, so it suspended FBA warehousing and receipt. This time, the regulation of package labeling is probably also to improve the efficiency of goods entering warehouses and putting on shelves during the peak season.


FBA has standardized labels many times, and the editor has also sorted them out for you here!


1. Can the same product and the same address be shipped using the previous FBA box label?


No, each label is unique. Please do not photocopy, reuse or modify the label for other boxes. You need to scan the code when entering the warehouse. If the information is inconsistent, it will result in failure to enter the warehouse.



2. Is it necessary to add Made in China on the Amazon outer box label?


Goods exported to the United States, South America, and Europe must be labeled Made in China, otherwise they will be detained and returned by local customs.


You can directly add Made in China to your label and then print and stick it, or print a separate Made in China label and stick it on the outer box.



3. Will the deviation between the weight and size on the outer box label and the actual situation affect warehousing?


If the deviation is not too large, it will not affect warehousing. The outer box label is mainly for Amazon logistics personnel to scan the code for warehousing.



4. I have two Amazon accounts. When the factory ships the goods, the outer box label is mistakenly affixed to the product sticker of another account. What should I do? Will they be linked?


● If it has not been put into the warehouse yet, ask the freight forwarder to re-label it before putting it into the warehouse


● If your label is a product from another account, it is very likely to be detected by Amazon when it is put into storage, which will cause associated risks.



5. If there are multiple SKUs in a shipment, do I have to affix the outer box labels to the corresponding boxes when affixing the box labels?


Each shipment ID label will contain information for a specific box. To avoid delays in receiving your inventory at an Amazon fulfillment center, be sure to place the correct label on the correct box.


If there is no correspondence, it will not affect the warehousing, but it may cause delays. Please do not stick the label on the seams or openings of the box to avoid damage when opening the box.


Amazon's series of adjustments to FBA can sometimes really catch sellers off guard! I hope everyone can always pay attention to the background dynamics and plan countermeasures as soon as possible to ensure that their own business is not affected!



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